payments - careinfo.inWill M Payments replaces cash transactions

Using your Smartphone to make payment in shops, mall, or any public transport is become general in this year, but its domination will depend on how successful retailers are in enticing people to keep their cards or cash in their pockets.

The stakes are high for phone manufactures and operators, not to mention banks, as the success of contactless systems where consumers sweep their Smartphone over a reader could shake up the profitable to retail payments market.

But the Ingenico chief executive, a leading manufacturer of payment card terminals as well as new contactless systems, doesn’t see people as ready to give up their debit cards just yet.

payments - careinfo.in“Smartphones are small part of the world market now but the main payment mechanism will remain the traditional (card) terminal which grows continuously,” said by philippe Lazare, Whose company manufactures more than one is three payment terminals is use worldwide.

That view didn’t stop Ingenico from announcing this past week at the mobile world congress trade show in Barcelona a contactless payments system compatible with apple pay.

payments - careinfo.inApple’s approval of the last year of NFC, or the near filed communication standard, was a major step towards this becoming the dominant standard, was a major step towards this becoming the dominant technology.

payments - careinfo.inGoogle has provided a similar service like a Google Wallet, available for a couple years.

NFC allows Smartphone or other devices to communicate with one another within a distance of several centimeters.

payments - careinfo.inSamsung recently acquired loop pay, whose technology links up with the magnetic strip readers in existing payments terminals instead of NFC.

This system transmits card details via protected magnetic signals to the reader when held up against it.

US banks are watching uncertainly as the appearance of contactless payment systems comes just as they are investing to upgrade payment cards and terminals from magnetic strips to chip cards.

This US Company works with merchants to develop loyalty and incentive programmers as part of mobile payment systems to help them boost sales.

Many experts see retailer’s contribution discounts and promotions tailored to each client as an important element in encouraging customers to make the switch to contactless payments with their Smartphone.

Everyone is not expecting a boom in the use of smart phones for making payments. We should never forget that more than 85% of all the transactions in the world are made by only cash.

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